Shell and Exxon Mobil have cancelled a planned sale of their UK North Sea gas assets to British oil and gas producer Viaro Energy, ending a deal that was agreed last year.

The companies said the decision was taken after commercial and market conditions changed, meaning the requirements needed to complete the transaction were no longer met. The agreement, reached in July 2024, covered one of the UK Continental Shelf’s largest and longest-producing natural gas portfolios.

Viaro Energy confirmed that both sides mutually agreed not to move forward with the deal, even though financing had already been secured.
Following the collapse of the transaction, Shell will continue to operate the assets.

The package included Shell’s interests in 11 gas fields, one exploration prospect in the Southern North Sea, as well as the onshore Bacton gas terminal, a key hub for Britain’s gas supply.

The sale formed part of Shell’s review of its Southern North Sea portfolio, as major energy companies reassess assets amid shifting market dynamics.

Viaro Energy currently produces about 25,000 barrels of oil equivalent per day and holds working interests in around 60 fields across the North Sea. The cancellation means the company will not, for now, expand its UK gas portfolio through the acquisition.